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TMI Blog2016 (7) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... at VAT Act and Rule 43 of the VAT Rules Held that:- In terms of Sections 60 and 61 of the VAT Act thus, the assessee was entitled to issue credit notes once the amount of tax shown as charged in the tax invoice exceeded the actual tax charged in respect of the sale concerned. This is precisely what the assessee had done and claimed benefit of reduced tax collected from the purchasers. This devise, in our opinion, was not prohibited by Section 8 of the VAT Act, reliance upon which has been made by the department. In essence what the assessee did, was to reduce the total turnover of the assessment year 2008-09 to the extent its value after discount during the previous year had come down which would have a direct relation to the tax pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a and framed the assessment accordingly, upon which, the Commissioner took the order of Assessing Officer into suo motu revision. In such order, the Commissioner was of the opinion that the benefit of discounted price could be granted to the dealer only during the same year in which the event took place. Principally, his objection was, therefore, that for the sale transactions which took place in the year 2007-08 for which the credit notes were issued, the benefit of reduced tax can be granted only during such period and not during the subsequent year. He, therefore, disallowed the adjustments and raised the revised tax demand of ₹ 49.43 lacs. Against this order, the respondent-assessee approached the Tribunal by filing revision petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per sub section (1) of Section 60, a registered dealer who sales taxable goods to another registered dealer has to provide him at the time of sale, with a tax invoice containing such particulars as may be prescribed. Section 61 pertains to credit and debit notes and reads as under: 61. Credit and debit notes : Subject to the provisions of section 8 and 60, where a tax invoice has been provided as contemplated in sub section (1) of section 60 and- (a) the amount shown as tax charged in the tax invoice exceeds the actual tax charged in respect of the sale concerned, the seller shall provide [within such period as may be prescribed, the purchaser with a credit note] of the sales of goods involved in the transaction, containing such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion, was not prohibited by Section 8 of the VAT Act, reliance upon which has been made by the department. In fact, Section 8 pertains to adjustments in tax. Sub section (1) provides that sub section (2) shall apply in relation of sales of taxable goods by any registered dealer inter alia where the consideration previously charged for that sale has been altered by agreement with the recipient whether due to the offer of a discount or for any other reason. This is subject to fulfillment of the condition viz. that a tax invoice in relation to that sale and the amount shown as tax charged on that sale is incorrect in relation to the amount properly chargeable on that sale or; the registered dealer has furnished a return in relation to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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